Key Take-Aways
- USD/CAD traded over the 1.3450 resistance as it picked up speed.
- On the 4-hours chart, a significant bullish trend line is developing with support close to 1.3340.
- GBP/USD and EUR/USD both continued to fall below important support levels.
- Interest rates were raised by the Fed from 2.5% to 3.25%.
Technical Analysis of USD/CAD
Over the 1.3200 level, the US Dollar’s significant rise versus the Canadian Dollar began. USD/CAD overcame the resistance at 1.3400 to go into a bullish area.
The pair has positioned itself above the 1.3300 area, the 100 simple moving average (4-hours, red), and the 200 simple moving average, according to the 4-hours chart. The pair even passed through the 1.3450 resistance region during the upward movement.
The level of 1.3525 was tested, and it is still strongly supported for further advances. An initial resistance on the upward is located close to the 1.3550 region.
The first significant barrier is located close to 1.3600. A strong advance above 1.3600 might pave the way for a test of 1.3700. Any additional advances could push the pair closer to the 1.3880 level.
An early support for the downside is located close to the 1.3425 level. Additionally, a significant bullish trend line is developing, with support near 1.3340 on the same chart.
The pair may move toward the 1.3315 level if the downside breaks below the support of the trend line. The pair may potentially test the 1.3220 level in the coming days if they fall below the next significant support, which is located close to the 1.3280 level.
When looking at EUR/USD, a new fall occurred beneath the 0.9900 support region. Additionally, the GBP/USD pair broke the 1.1340 support and moved to a new multi-year low.
Economic News To Trade Today
- BoE Interest Rate Decision: Predicted 2.25% vs. Prior 1.75%.
US Initial Jobless Claims are expected to be 210K, down from 213K the prior
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